In farming, there are many different types of farming equipment to help grow a successful business. Farmers must invest in this equipment to keep on top of the competition. And while this type of business expense may be scary at first, it is worth every penny. This is because farm machinery can make or break a company’s success rate by doing the heavy lifting and getting rid of much-needed manual labor. With that said, here are five reasons why farm equipment is one of the best financial investments for any farmer looking to improve their success through technology.
1. Labor Reduction
The goal for most farmers is more production for less cost. To increase their productivity, farmers must ensure they are taking advantage of the technology available. That includes labor reduction devices like self-propelled sprayers and swathers, eliminating the need for extra workers.
2. Expanded Market Opportunities
Another benefit of investing in farm machinery is that it will allow a farmer access to new markets. As time passes, farmers must continue reinventing themselves to stay relevant in today’s farming world. For example, self-propelled sprayers and swathers allow a farmer to plant crops more efficiently and expand their market potential.
3. Saving Time
While larger tractors can take up to four times longer to accomplish the same tasks as smaller tractors, the time is quickly made up for by the increased production. This is because larger tractors can cover more area in less time, allowing them to complete 2-4 times more work than an average tractor. The only downside is that they do require more maintenance and fuel. Many farmers use GPS technology to help them keep track of where they have been and where they need to end up.
4. Increased Profits
The next reason why farm machinery is an excellent investment is that it increases profits. This is because farmers can use the extra time and money saved from their increased productivity to focus on marketing and other areas of their business that ultimately bring in more revenue. With all the benefits listed above, one might start to wonder: “which piece of equipment should I invest in?” Well, it all depends on your price point and planted crop. For example, a farmer with substantial land ownership might want to invest in larger tractors to help him cover more ground faster.
5. Provides Substantial Financial Benefits during the Lifetime of the Capital Investment
The purchase of farm equipment can provide substantial financial benefits. As any farmer will attest, the cost of a new tractor may be offset by the high depreciation and interest charges associated with leasing an older machine. In some cases, investing in new machinery can reduce operating expenses.
Farm equipment, such as tractors, combines, harvesters, and other equipment, are financial investments like other assets such as a home or car. When purchasing a piece of equipment, the primary consideration should be the returns gained by investing in new technology. By investing in farm equipment, you will actually spend less on overall costs.